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ETC Announces 8 Cent DividendWaukesha, WI -- December 6, 2002 For Further Information contact: Dean Danner, President
Jeff Nigl, Chief Financial Officer
(262) 542-5600 * http://www.etcia.com
ETC ANNOUNCES 8 CENT DIVIDEND
WAUKESHA, WISCONSIN, December 6, 2002 OTC Bulletin Board
ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol - ETCIA
Electronic Tele-Communications, Inc. (ETC) today reported that its Board of Directors has declared a 2002 dividend of $.08 per Class A Share. The $.08 dividend will be paid on December 30, 2002 to shareholders of record at the close of business on December 20, 2002. ETC’s Officers and Directors will not share in this dividend payment, all having previously waived their rights to any $.08 dividend payment in 2002. Commenting on the dividend payment, ETC President Dean Danner said, "ETC had paid an annual dividend of at least $.08 per Class A Share every year between going public in 1985 and 1999. The Board of Directors believe that our stock is undervalued and wanted to provide some return to our investors. At the same time, with the current environment in the telecommunications industry adversely impacting sales and earnings, the Board of Directors and the Officers of ETC felt it would be in the best interests of ETC to waive their rights to the $.08 dividend. This waiver will result in nearly a 50% reduction in the cost of the dividend payment." "ETC returned to profitability in the second quarter of 2002, but sales shortfall in the third quarter resulted in additional losses, and we anticipate a loss for the year. In spite of the net losses, ETC’s balance sheet continues to be debt free. We believe our cost reductions will enable ETC to return to profitability once the industry resumes the replacement of outdated equipment and the expansion of their facilities. ETC is continuing to expand the capabilities of our premier Emcee system in preparation for this industry turn around anticipated to occur in 2003." Electronic Tele-Communications is a supplier of Voice Application Processing Platforms to domestic and foreign telephone utilities and of messaging systems to the commercial market. ETC's equipment provides a wide range of audio information and call handling services via telephone networks, computer networks, and the Internet. ETC, with corporate headquarters in Waukesha, Wisconsin also has operations in Norcross, Georgia. Certain statements in this press release which are not historical facts are "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. Any "forward-looking" statements are provided in compliance with the "Safe Harbor" provision of the Private Securities Litigation Reform Act of 1995. "Forward-looking" statements involve a number of risks and uncertainties including, but not limited to, technology changes, backlog, acquisitions, status of the economy, governmental regulations, sources of supply, expense structure, product mix, major customers, level of order flow, competition, litigation, and other risk factors detailed in the Company’s filings with the Securities and Exchange Commission. Investors are encouraged to consider the risks and uncertainties included in those filings. # # # |